The trial of Keonne Rodriguez, co-founder of Samourai Wallet, has ended with a 5-year prison sentence. He was accused of facilitating criminal activity with his cryptocurrency mixer.
Keonne Rodriguez convicted in Samourai Wallet case
Keonne Rodriguez was convicted of operating a cryptocurrency mixer that laundered millions of dollars in funds linked to criminal activities.
The investigation showed that Keonne Rodriguez was aware of how his platform was being used. However, the trial hinged on one question: can a person who offers a decentralized platform be held responsible if it is used by criminals?
The answer is yes, according to the judge, who strongly emphasized Keonne Rodriguez’s responsibility:
His company presented itself as a service for the criminal world. He literally laundered criminal money. There is no acknowledgment of the human suffering that was facilitated by the defendant.
Not a Sam Bankman-Fried
Keonne Rodriguez’s defense emphasized that the man had pleaded guilty and admitted his guilt. His lawyer also argued that Rodriguez was not seeking to enrich himself excessively or deceive users, unlike Sam Bankman-Fried in the FTX case:
He lived in a $250,000 house in Harmony, Pennsylvania, unlike SBF. He is an engineer. He is a warm man, very attached to his family.
But for the judge, Keonne Rodriguez could not have been unaware of how Samourai Wallet was being used, and therefore bears responsibility. He also made a direct link between cryptocurrencies and criminal networks:
The world of cryptocurrency is a gift to criminals. Victims see their lives ruined by hackers. Criminals hide the proceeds of their crimes and escape law enforcement. [Keonne Rodriguez] does not recognize this.
5 years in prison for the co-founder of Samourai Wallet
Keonne Rodriguez was therefore sentenced to 5 years in prison, the maximum sentence requested at trial. He will also have to pay a fine of $250,000. His prison sentence will begin on December 19. The judge was particularly harsh in his conclusion:
You operated with moral blinders. You may be kind to strangers, but if they are victimized, you choose to use your considerable talent to make it more difficult for them to obtain compensation.
This case echoes that of Tornado Cash, another cryptocurrency mixer. Its founder, Roman Storm, was recently found guilty, but has not yet been informed of his sentence.
